WideOpenWest, Aria Energy break; Par Pharmaceutical loans slide with acquisition by Endo

By Sara Rosenberg

New York, May 18 – In the secondary market on Monday, WideOpenWest Finance LLC and Aria Energy Operating LLC freed up for trading, Par Pharmaceutical Holdings Inc.’s term loans were softer on acquisition news, and HealthPort (CT Technologies Intermediate Holdings and Smart Holdings Corp.) saw its term loan weaken as the company is getting ready to bring a deal to market.

Over in the primary, At Home Holding III Inc. finalized pricing on its term loan B at the tight end of guidance, Life Time Fitness Inc. (LTF Merger Sub Inc.), TransUnion LLC, Novelis Inc. and Camping World Inc. released price talk with launch, and Informatica Corp. and Capstone Logistics LLC joined this week’s calendar.

WideOpenWest starts trading

WideOpenWest’s roughly $1,411,000,000 first-lien term loan B due April 1, 2019 hit the secondary market on Monday, with levels seen at par bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 350 basis points, after flexing last week from Libor plus 325 bps. The debt has a 1% Libor floor and 101 soft call protection for six months, and was issued at par.

Credit Suisse Securities (USA) LLC is leading the term loan that will be used to reprice an existing term loan B due April 1, 2019 following a $118 million prepayment from Libor plus 375 bps with a 1% Libor floor.

In connection with the repricing, the company is amending its credit facility to permit the refinancing of senior subordinated notes with senior unsecured notes and to make lender-friendly changes.

WideOpenWest is a Denver-based provider of data, video and telephony services.

Aria tops OID

Aria Energy’s credit facility broke too, with levels on the $200 million seven-year term loan B quoted at 99½ bid, par ½ offered before moving up to par ¼ bid, 101 offered, a trader said.

The term loan B is priced at Libor plus 400 bps with a 1% Libor floor and was issued at a discount of 99. There is 101 soft call protection for six months.

During syndication, pricing on the B loan was reduced from talk of Libor plus 425 bps to 450 bps.

The company’s $270 million credit facility (Ba3/B) also includes a $70 million five-year revolver.

Barclays, RBC Capital Markets, M&T Bank and Comerica are leading the deal that will be used for working capital requirements and general corporate purposes, to refinance existing debt, to put cash on the balance sheet and to fund a distribution to the sponsor, Ares EIF.

Aria Energy is a Novi, Mich.-based owner, operator and developer of long-lived energy projects.

Par Pharmaceutical dips

Also in trading, Par Pharmaceutical’s term loan B-2 weakened to 99 7/8 bid, par 3/8 offered from par bid, par 3/8 offered, and its term loan B-3 fell to par bid, par ½ offered from par ¼ bid, par 5/8 offered after the company announced that it is being purchase by Endo, a trader remarked.

Par Pharmaceutical is being acquired from TPG in a transaction valued at $8.05 billion, including the assumption of debt. The price will consist of about 18 million shares of Endo equity and $6.5 billion cash consideration to Par shareholders.

Endo, a Dublin, Ireland-based specialty pharmaceutical company, expects to fund the cash portion of the acquisition with term loans, bonds, cash and an equity offering of around $1.5 billion to $2 billion.

Deutsche Bank Securities Inc. and Barclays are leading the debt.

Closing is expected in the second half of this year, subject to regulatory approval in the United States and certain other jurisdictions, and other customary conditions.

Par Pharmaceutical is a Woodcliff, N.J.-based pharmaceutical company.

HealthPort softens

HealthPort’s term loan dropped to par bid, 101 offered from par ¾ bid, 101¼ offered following news that the company will launch a $155 million first-lien incremental term loan and a repricing of its existing $324.2 million first-lien term loan with a lender call at 11 a.m. ET on Tuesday, according to sources.

Talk on the incremental loan and repricing is Libor plus 425 bps with a 1% Libor floor, and the debt will have 101 soft call protection for six months, sources said. The incremental loan will be offered at an original issue discount of 99.5, and the repricing will be offered at par.

Commitments for the loans, which both mature on December 2021, are due at 5 p.m. ET on May 26.

Credit Suisse Securities, Deutsche Bank Securities and Jefferies Finance LLC are leading the incremental term loan, which will be used to fund the acquisition of IOD Inc., and Credit Suisse is the sole lead on the repricing, which will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Closing on the acquisition is expected this quarter, subject to regulatory approvals and conditions.

HealthPort is an Alpharetta, Ga.-based provider of medical information access management and compliance services to health-care organizations. IOD is a health-information management company.

At Home firms pricing

Switching to the primary market, At Home Holding set the spread on its $300 million first-lien term loan B (B-) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and left the 1% Libor floor and original issue discount of 99 unchanged, according to a market source.

Bank of America Merrill Lynch and Jefferies Finance are leading the deal that will be used to pay down revolver borrowings and refinance notes.

At Home is a Dallas-based big box specialty retailer of home decor products.

Life Time sets talk

Life Time Fitness held its bank meeting on Monday, launching its $1.1 billion seven-year covenant-light term loan B with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount in the 99.5 area, according to a market source.

The company’s $1.35 billion credit facility (B1/BB-) also includes a $250 million revolver.

Commitments are due on June 2.

Deutsche Bank Securities, Goldman Sachs Bank USA, Jefferies Finance, BMO Capital Markets, RBC Capital Markets, Macquarie Capital (USA) Inc., Nomura and Mizuho are leading the deal that will be used with $600 million of senior notes and a $900 million sale leaseback to help fund the buyout of the company by Leonard Green & Partners and TPG for $72.10 per share in cash. The transaction is valued at more than $4 billion.

Closing is expected in the first week of June, subject to shareholder approval and other conditions.

Life Time Fitness is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

TransUnion holds call

TransUnion surfaced in the morning with plans to hold a lender call at 3 p.m. ET to launch a $1,877,000,000 term loan B-2 due April 2021 talked at Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

The loan has a step-down to Libor plus 275 bps at 4.5 times secured net leverage that will be triggered upon completion of an initial public offering of equity securities and 5 times net total leverage through the holdco, the source said.

Commitments are due at the close of business on Thursday.

Deutsche Bank Securities is leading the deal that will be used to refinance an existing term loan due April 2021 priced at Libor plus 300 bps with a 1% Libor floor.

TransUnion amending

In connection with the term loan refinancing, TransUnion asked lenders to amend its existing credit facility to permit the incurrence of new pro rata facilities to be substituted for an existing revolver, the source added.

The company plans to get a new $210 million revolver due 2020 and a new $325 million to $350 million term loan due 2020, according to an 8-K filed with the Securities and Exchange Commission.

Proceeds from the new term loan due 2020 and from an IPO will be used to redeem $600 million of 9.625%/10.375% senior PIK toggle notes due 2018 and $400 million 8.125%/8.875% senior PIK toggle notes due 2018.

TransUnion is a Chicago-based provider of information management and risk management services.

Novelis reveals guidance

Novelis launched in the afternoon its $1.8 billion seven-year covenant-light term loan (Ba2) with talk of Libor plus 300 bps to 325 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due on May 27, the source added.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities, Citigroup Global Markets Inc., Credit Suisse Securities and J.P. Morgan Securities LLC are leading the deal that will be used to repay a term loan due in 2017 and ABL revolver borrowings.

Novelis is an Atlanta-based aluminum-rolled products and aluminum recycling company.

Camping World launches

Camping World disclosed talk of Libor plus 425 bps with a 1% Libor floor on its $95 million add-on term loan and repricing of its existing term loan that launched with a call during the session, a source remarked.

The add-on term loan is offered with an original issue discount of 99.5 to 99.75, and the repricing is offered at par, the source said.

Commitments are due at noon ET on Thursday.

Goldman Sachs Bank USA is leading the deal for the supplier of RV parts, supplies and accessories.

Proceeds from the add-on will be used to fund a dividend, and the repricing will take the existing loan down from Libor plus 475 bps with a 1% Libor floor.

Informatica timing emerges

Informatica nailed down timing on the launch of its $2,025,000,000 senior secured credit facility, with the scheduling of a bank meeting for 10 a.m. ET on Wednesday, according to a market source.

The facility consists of a $150 million revolver and a $1,875,000,000 term loan.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities, Macquarie Capital, Morgan Stanley Senior Funding, Nomura Securities International, RBC Capital Markets and Deutsche Bank Securities are leading the deal that will be used to help fund the buyout of the company by Permira funds and Canada Pension Plan Investment Board for $48.75 in cash per share, or $5.3 billion.

Based on filings with the Securities and Exchange Commission, the company is expected to issue $750 million of unsecured notes and get about $2,542,000,000 in equity to fund the buyout as well.

Closing is targeted for the second or third quarter, subject to shareholder and regulatory approval.

Informatica is a Redwood City, Calif., provider of enterprise data integration software and services.

Capstone coming soon

Capstone will hold a bank meeting at 12:30 p.m. ET on Tuesday to launch $165 million in add-on term loans, split between a fungible $127.5 million add-on first-lien term loan due October 2021 and a $37.5 million add-on second-lien term loan due October 2022, according to a market source.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, and pricing on the second-lien term loan is Libor plus 775 bps with a 1% Libor floor. Original issue discounts are still to be determined.

Goldman Sachs Bank USA is the left lead on the deal that will be used to fund the acquisition of Pinnacle Workforce Logistics, the source added.

Capstone Logistics is a Norcross, Ga.-based provider of outsourced supply chain solutions at distribution centers catering to the grocery, food-service, retail and automotive industries. Pinnacle Workforce is a Chino Hills, Calif.-based workforce logistics provider.

Community Health closes

In other news, Community Health Systems Inc. completed its roughly $4.54 billion in term loans (Ba2/BB/BB), split between a $1.6 billion covenant-light term G due December 2019 and a roughly $2.94 billion covenant-light term H, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the Nashville-based hospital company’s term loan G is Libor plus 275 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75.

The term loan H is priced at Libor plus 300 bps with a 1% Libor floor, and it was issued at par.

Both term loans have 101 soft call protection for six months.

During syndication, the term loan G was upsized from $1 billion, while the discount firmed at the tight end of the 99.5 to 99.75 talk, and the term loan H was downsized from about $3.54 billion.

Credit Suisse Securities, Bank of America Merrill Lynch, Citigroup Global Markets, Goldman Sachs Bank USA, JPMorgan, RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS AG, Wells Fargo Securities LLC, Deutsche Bank Securities and Morgan Stanley Senior Funding led the deal that refinanced an existing term D due January 2021 priced at Libor plus 325 bps with a 1% Libor floor.

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